Italicizing unusual titles and positions when the word/phrase is direct object

Hello,

This is my first time posting. Even worse, I'm posting that may not have a simple answer.
I'm writing an brief biographical essay which contains the sentence:

"Franz Herkt, Schott's president, took interest in Ries's work and, in 1986, offered him the title Artist in Residence."

Initially, I rounded Artist in Residence with quotations, then doubled back and italicized it, and finally decided that I wasn't sure either, if any formatting, was correct given the context.

More simply:

(1) "Franz Herkt offered him the title 'Artist in Residence'."
v.
(2) "Franz Herkt offered him the title Artist in Residence."

Does anyone have suggestions?

I'd also be interested in knowing whether example (1) should end 'Artist in Residence'." or 'Artist in Residence.'" (as a general question on quotations, not necessarily that example).

Thank you!

Chase